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Ballmer Wants To Develop Clippers-Run OTT Service To Supplement Any New RSN Deal

Clippers Owner Steve Ballmer has told networks that he "will hold back most of the traditional digital rights in the his next media deal so that the team can launch" an OTT service to supplement games, according to Ourand & Lombardo of SPORTSBUSINESS JOURNAL. These rights "will not include live games but will allow for other in-game programming, such as player specific cameras, in-game highlights and real-time statistics -- though no specific content has been determined." This would mark the first time an NBA team has "carved out a significant portion of digital rights from a regional sports network deal to develop a team-run OTT service." The team's current deal with FS Prime Ticket "ends after this season and pays the team an average of around" $25M per year. Fox Sports and the Clippers "have discussed a short-term deal worth around" $50M per year that would "allow Ballmer to pursue his OTT offering." The nature of that deal would "allow the sides to better determine the value of digital rights." Ballmer originally wanted to "keep all his media rights in-house and stream his team's games via an OTT platform." He decided that it was "a better financial decision" to sell the Clippers' local TV rights to an RSN while keeping "a large swath of digital rights." Sources said that the Clippers "will launch their enhanced service on an authenticated basis, meaning it will be available only to cable and satellite users." A similar situation "is developing" in DC with Wizards Owner Ted Leonsis who "launched Monumental Network as an OTT service to supplement his teams' games." Monumental Net is eventually "expected to add digital rights, not including live games" (SPORTSBUSINESS JOURNAL, 4/4 issue).  

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